Microwave Power Devices, Inc. Finalizes Development and Supply Agreement with QUALCOMM
Results in an Additional $4.5 Million in Follow-on Orders for MPDI
HAUPPAUGE, N.Y., June 4 /PRNewswire/ -- Microwave Power Devices, Inc. (Nasdaq: MPDI - news) today announced
that it has finalized a development and supply agreement with QUALCOMM Incorporated (Nasdaq: QCOM - news). The
agreement specifies that MPDI will develop, manufacture, test and deliver highly linear, single channel, cellular Code Division
Multiple Access (''CDMA'') amplifiers. Efforts related to the development, prototypes, qualification and initial production units
have already been completed. Today's finalization results in an additional $4.5 million in follow-on production orders for MPDI.
Under the terms of the agreement, shipments are to be completed by no-later-than December 1999. In addition, if
QUALCOMM's requirement for production units increases during this period, step pricing for higher quantities is pre-defined
in the agreement. Microwave Power Devices is supplying these amplifiers for use in QUALCOMM's cellular QCell(TM)
CDMA base stations. These base stations are supporting worldwide wireless local loop applications and will be utilized to
upgrade existing cellular infrastructure from analog to digital.
Edward J. Shubel, President and Chief Executive Officer of MPDI, commented, ''This agreement reflects the confidence
QUALCOMM, the developer of CDMA technology, has in the capabilities and expertise of our Company, and gives further
evidence to our strengthening relationship with them. Our fielded amplifiers are meeting and/or exceeding all technical
expectations. I am extremely proud of our rapid time-to-market success with this particular product.''
''We are pleased with the support MPDI has given us during these early stages of our relationship. They have proven to be a
valuable partner and have contributed to our success on this program,'' stated Frederick Jones, Program Director for
QUALCOMM.
With the receipt of this order, the Company's backlog totals approximately $96 million. Approximately 49% of this backlog is
for commercial products which involves higher volume manufacturing under shorter term arrangements with our customers. The
remaining 51% of this backlog is concentrated in our military segment which generally involves lower volume production under
longer term projects. This dual design, development and production capability has been, and continues to be, a competitive
strength for MPDI.
Headquartered in San Diego, QUALCOMM develops, manufactures, markets, licenses and operates advanced
communications systems and products based on its proprietary digital wireless technologies. QUALCOMM's primary product
areas are the OmniTRACS(R) system (a geostationary satellite-based, mobile communications system providing two-way data
and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the
development of the Globalstar(TM) low-earth-orbit (LEO) satellite communications system. Other QUALCOMM products
include the Eudora Pro(R) electronic mail software, ASIC products, and communications equipment and systems for
government and commercial customers worldwide. For more information on QUALCOMM products and technologies, please
visit QUALCOMM's web site at qualcomm.com.
As an ISO 9001 quality system certified company, Microwave Power Devices, Inc. designs, manufactures and sells highly
linear power amplifiers and related subsystems to the worldwide wireless telecommunications market. These single and
multi-channel amplifiers, which are a key component in wireless base stations, increase the power of radio frequency and
microwave signals with low distortion. In addition, the Company designs and manufactures high- power, solid-state amplifiers
for satellite communications and medical applications. The Company also designs and manufactures amplifiers and other
products for the military market. For more information on Microwave Power Devices, please visit the Company's web site at
mpdi.com.
Certain information contained in this press release is forward-looking. Actual results might differ materially from the
forward-looking statements contained in this release. Please note that the Company filed with the SEC its Annual Report on
Form 10-K on March 20, 1998, for the year ended December 31, 1997. Factors, set forth and incorporated in Item 1 -
''Forward-Looking Statements'' of such Form 10-K, could cause the Company's actual results to differ materially from those
expressed in any forward-looking statements. In addition, backlog is not necessarily indicative of future sales. Moreover, nearly
all of the Company's backlog can be canceled at any time by the Company's customers. Certain of the purchase orders
comprising backlog include product specifications not yet achieved by the Company.
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